BILL NUMBER: AB 593	CHAPTERED  10/10/99

	CHAPTER   833
	FILED WITH SECRETARY OF STATE   OCTOBER 10, 1999
	APPROVED BY GOVERNOR   OCTOBER 8, 1999
	PASSED THE ASSEMBLY   SEPTEMBER 3, 1999
	PASSED THE SENATE   SEPTEMBER 1, 1999
	AMENDED IN SENATE   AUGUST 31, 1999
	AMENDED IN SENATE   AUGUST 17, 1999
	AMENDED IN SENATE   JUNE 21, 1999
	AMENDED IN ASSEMBLY   JUNE 2, 1999
	AMENDED IN ASSEMBLY   MAY 18, 1999
	AMENDED IN ASSEMBLY   MAY 6, 1999
	AMENDED IN ASSEMBLY   APRIL 22, 1999

INTRODUCED BY   Assembly Members Strom-Martin and Thomson
   (Principal coauthor:  Assembly Member Cardoza)
   (Coauthors:  Assembly Members Maldonado and Wiggins)
   (Coauthor:  Senator O'Connell)

                        FEBRUARY 19, 1999

   An act to amend Sections 47000, 47001, 47003, 47004, 47011, 47013,
47020, and 47026 of, to add Sections 47004.1 and 47021 to, to repeal
Sections 47014 and 47020 of, and to repeal and add Section 47002 of,
the Food and Agricultural Code, and to amend Section 113745 of the
Health and Safety Code, relating to agriculture.


	LEGISLATIVE COUNSEL'S DIGEST


   AB 593, Strom-Martin.  Certified farmers' markets.
   (1) Existing law authorizes the Secretary of Food and Agriculture
to adopt regulations to encourage the direct sale by farmers to
consumers of all types of certified agricultural products and
noncertifiable agricultural products produced within the state and to
establish qualifications for persons selling products directly to
consumers if the sales involve the granting of prescribed exemptions
by the secretary.  Existing law authorizes the secretary to allow
certified farmers' markets to establish rules and procedures that are
more restrictive than, or do not violate, the provisions of state
law relating to certified farmers' markets.  Existing law allows any
person aggrieved by the implementation of a role or procedures
established by a certified farmers' market to submit a written appeal
to the secretary, as specified.
   This bill would allow California farmers to transport for sale and
sell California-grown fresh fruits, nuts, and vegetables that they
produce, directly to the public, which produce would be exempt from
size, standard pack, container, and labeling requirements, at a
certified farmers' market or at a retail stand located at or near the
point of production, subject to specified conditions.  The bill
would authorize certified farmers' markets to establish rules and
procedures that are more restrictive than, and do not otherwise
violate, provisions of state law relating to certified farmers'
markets.  The bill would require the governing body of any certified
farmers' market operating with more than one participating certified
producer to adopt written rules and procedures pertaining to the
operation of the market.  The bill would require the Department of
Food and Agriculture, upon request, to issue an advisory opinion as
to whether, as a question of law, the rule or procedure in dispute is
consistent with applicable state law, as specified. The bill would
provide that the department shall not incur liability in connection
with the preparation of an advisory opinion.  The bill would require
the department to provide for an informal hearing with regard to any
grievance of a certified producer involving questions of fact, as
prescribed. The bill would also provide for the mediation of
disputes, as specified.  The bill would prescribe related matters and
would delete the appeal provisions.
   (2) Existing law, until January 1, 2000, (a) requires the
secretary to establish the Certified Farmers' Market Advisory
Committee with prescribed membership; (b) authorizes the committee to
make recommendations to the secretary on specified matters relating
to the regulation of certified farmers' markets; (c) requires the
members of the committee to serve without compensation; and (d)
prescribes related matters relating to the committee.
   This bill would authorize the advisory committee to make
recommendations to the secretary regarding the department's budget
relating to the regulation of certified farmers' markets and the
assessment of fees to pay for costs incurred by the department in
undertaking that regulation, as well as alternative strategies for
certification and investigation methodology, and methods for industry
self-regulation and commission formation.  The bill would authorize
the department to reimburse the members of the advisory committee for
their travel expenses.  The bill would delete the January 1, 2000,
date, thereby continuing indefinitely those provisions relating to
the advisory committee.
   (3) Existing law regulates the certification of a  farmers' market
and a producer by a county agricultural commissioner and authorizes
the imposition of a fee by that commissioner to pay for costs
incurred in connection with related inspection duties, as prescribed.
  Existing law, until January 1, 2000, requires each certified
producer to pay a state certificate fee of $10, which is required to
be deposited in the Department of Food and Agriculture Fund for use
by the department to undertake the regulation of certified farmers'
markets, as prescribed.
   This bill would authorize the department or a county agricultural
commission to deny the renewal of a certified farmers' market
certificate or a certified producer's certificate under certain
circumstances.  The bill, until January 1, 2005, additionally would
require every operator of a certified farmers' market to pay to the
department, on a quarterly basis, a specified fee.  The money
generated by the fee would be required to be deposited in the
Department of Food and Agriculture Fund, to be used, upon
appropriation by the Legislature, to pay for costs incurred by the
department in carrying out its duties relating to certified farmers'
markets, including specified actions undertaken by the department.
Because, under existing law, the failure to pay the required fee
would be a crime, the bill would impose a state-mandated local
program by creating a new crime.
   (4) Existing law, until January 1, 2000, authorizes the secretary
and county agricultural commissioners to impose civil penalties, in
accordance with specified procedures, on persons who violate
prescribed provisions of law relating to certified farmers' markets.

   This bill would extend that date to January 1, 2005.
   (5) Existing law makes legislative findings and declarations
relating to direct marketing of agricultural products.
   The bill would modify those findings and declarations.
  (6) The California Constitution requires the state to reimburse
local agencies and school districts for certain costs mandated by the
state.  Statutory provisions establish procedures for making that
reimbursement.
   This bill would provide that no reimbursement is required by this
act for a specified reason.


THE PEOPLE OF THE STATE OF CALIFORNIA DO ENACT AS FOLLOWS:


  SECTION 1.  Section 47000 of the Food and Agricultural Code is
amended to read:
   47000.  The Legislature finds and declares all of the following
with regard to the direct marketing of agricultural products:
   (a) Direct marketing of agricultural products benefits the
agricultural community and the consumer by, among other things,
providing an alternative method for growers to sell their products
while benefiting the consumer by supplying quality produce at
reasonable prices.
   (b) Direct marketing is a good public relations tool for the
agricultural industry that brings the farmer face-to-face with
consumers.
   (c) The marketing potential of a wide variety of
California-produced agricultural products should be maximized.
   (d) The department should maintain a direct marketing program and
the industry should continue to encourage the sale of
California-grown fresh produce.
   (e) A regulatory scheme should be developed that provides the
flexibility that will make direct marketing a viable marketing
system.
   (f) The department should assist producers in organizing certified
farmers' markets and other forms of direct marketing by providing
technical advice on marketing methods and in complying with the
regulations that affect direct marketing programs.
   (g) The department is encouraged to establish an ad hoc advisory
committee to assist the department in establishing regulations
affecting direct marketing of products and to advise the secretary in
all matters pertaining to direct marketing.
  SEC. 1.5.  Section 47001 of the Food and Agricultural Code is
amended to read:
   47001.  (a) The secretary may adopt regulations to encourage the
direct sale by farmers to consumers of all types of California
agricultural products.
   (b) These regulations may include provisions to ensure and
maintain quality and wholesomeness of the products.
  SEC. 2.  Section 47002 of the Food and Agricultural Code is
repealed.
  SEC. 3.  Section 47002 is added to the Food and Agricultural Code,
to read:
   47002.  California farmers may transport for sale and sell
California-grown fresh fruits, nuts, and vegetables that they
produce, directly to the public, which produce shall be exempt from
size, standard pack, container, and labeling requirements, at a
certified farmers' market or at a retail stand located at or near the
point of production, subject to the following conditions:
   (a) All fresh fruits, nuts, and vegetables sold shall comply with
the California Code of Regulations governing maturity and quality.
   (b) No exemption granted by this section supersedes the provisions
of federal marketing orders, state marketing orders, or any health
and safety laws, regulations, or ordinances.
   (c) All fresh fruits, nuts, and vegetables sold in closed consumer
containers shall be labeled with the name, address, and ZIP Code of
the producer, and a declaration of identity and net quantity of the
commodity in the package.
  SEC. 4.  Section 47003 of the Food and Agricultural Code is amended
to read:
   47003.  The secretary may establish qualifications for persons
selling products directly to consumers whenever the sales involve the
use of any exemption granted by this chapter.  Certified farmers'
markets and producers' sales outlets, at or near the location of
production, may likewise be subject to qualifications.
  SEC. 5.  Section 47004 of the Food and Agricultural Code is amended
to read:
   47004.  (a) Certified farmers' markets  may establish rules and
procedures that are more restrictive or do not violate state law or
regulation governing or implementing this chapter.
   (b) Certified farmers' markets are locations established in
accordance with local ordinances, where California farmers may
transport and sell to the public California agricultural products
that they produced, that are exempt from the established grade, size,
labeling, packaging and other such requirements for fruits, nuts,
and vegetables, and operated in accordance with this chapter and
regulations adopted pursuant to this chapter.
   (c) The governing body of any certified farmers' market operating
with more than one participating certified producer shall adopt
written rules and procedures pertaining to the operation of the
market.  The rules shall include a requirement that the governing
body and its designated agents establish, implement, and enforce all
rules and procedures pertaining to the operation of the certified
farmers' market in a fair, nondiscriminatory, and equitable manner.

  SEC. 6.  Section 47004.1 is added to the Food and Agricultural
Code, to read:
   47004.1.  (a) Any certified producer aggrieved by a rule or
procedure of a certified farmers' market may submit a written request
to the department for an advisory opinion as to whether, as a
question of law, the rule or procedure in dispute is consistent with
this chapter and the regulations implementing this chapter.  Not
later than 15 calendar days after the date on which the written
request is received, the department shall undertake its review and
issue an advisory opinion.  The request for and issuance of an
advisory opinion is not a prerequisite to the pursuit of any civil
litigation.  However, the advisory opinion shall be given substantial
weight in any subsequent civil or administrative proceeding
involving the parties and subject matter of the advisory opinion.
The department may adopt regulations providing for the precedent
value of its advisory opinions issued pursuant to this section.
Notwithstanding any other provision of law, the department shall not
incur liability in connection with the preparation and issuance of
any advisory opinion issued pursuant to this section.
   (b) The department shall provide for an informal hearing pursuant
to Article 10 (commencing with Section 11445.10) of Chapter 4.5 of
Part 1 of Division 3 of Title 2 of the Government Code, with regard
to any grievance of a certified producer involving questions of fact
concerning any action taken by a certified farmers' market against
the producer, or any implementation of a rule or procedure
established by certified farmers' market against the producer, or any
other related issue, as to whether application of the rule or
procedure in dispute is consistent with this chapter and the
regulations implementing this chapter.  The informal hearing shall
proceed without the option of conversion to a formal hearing.  The
request for an informal hearing to resolve issues involving disputes
of fact is not a prerequisite to the pursuit of any civil litigation.

   (c) In addition to, or in lieu of, the alternatives set forth in
subdivisions (a) and (b), the parties may agree to employ mediation.
If mediation fails to resolve the dispute, the parties may agree to
employ binding arbitration.  The department and the county
agricultural commissioners shall incur no expense or liability for
mediation or binding arbitration.
  SEC. 7.  Section 47011 of the Food and Agricultural Code is amended
to read:
   47011.  The committee shall be advisory to the secretary on all
matters pertaining to direct marketing of agricultural products at
certified farmers' markets and may make recommendations including,
but not limited to, the following:
   (a) The amendment, repeal, or adoption of legislation and
regulations that relate to the administration and enforcement of this
chapter.
   (b) Administrative policies and procedures that relate to the
inspection of certified producers and certified farmers' markets.
   (c) Administrative civil penalties for violations of direct
marketing regulations.
   (d) Certification fees collected pursuant to Section 47020.
   (e) Statewide review of enforcement actions.
   (f) The annual budget of the department to carry out this chapter
and the assessment of fees to pay for the costs incurred by the
department to carry out this chapter.
   (g) Alternative strategies for certification and investigation
methodology, and methods for industry self-regulation and commission
formation.
  SEC. 8.  Section 47013 of the Food and Agricultural Code is amended
to read:
   47013.  The members of the committee and any alternate shall serve
without compensation, but may be reimbursed by the department for
travel expenses incurred in the performance of their duties.
  SEC. 9.  Section 47014 of the Food and Agricultural Code is
repealed.
  SEC. 10.  Section 47020 of the Food and Agricultural Code, as added
by Section 1.5 of Chapter 606 of the Statutes of 1996, effective
until January 1, 2000, is amended to read.
   47020.  (a) A certified farmers' market certificate issued by a
county agricultural commissioner shall be valid for 12 months from
the date of issue.  The county agricultural commissioner shall
inspect every certified farmers' market within his or her
jurisdiction at least once, in every six months of operation.  The
county agricultural commissioner may charge a certification and
inspection fee up to a maximum rate of sixty dollars ($60) per hour,
unless the county board of supervisors elects not to charge
inspection and certificate costs.  Inspections shall be required
notwithstanding a county board of supervisors' election not to charge
certificate and inspection fees.  If a fee is charged for conducting
the certification and inspection, it  shall include either the
itemized actual costs, or the weighted average hourly rate, as
determined on an annual basis by the county, which shall be provided
to the certified farmers' market manager prior to the payment of the
fee.
   (b) A certified producer's certificate issued by a county
agricultural commissioner may be valid for up to 12 months from the
date of issue.  The county agricultural commissioner in each county
shall perform at least one annual onsite inspection of the property
or properties listed on every certified producer's certificate issued
in their county to verify production of the commodities listed on
the certificate or the existence in storage of the harvested
production, or both.  If the certificate is issued for a period of
seven months or more, the county agricultural commissioner in each
county shall perform at least one additional onsite inspection or
other equally appropriate measure to verify production or storage, or
both.  The county agricultural commissioner may charge a certificate
and inspection fee up to a maximum rate of sixty dollars ($60) per
hour, unless the county board of supervisors elects not to charge
inspection and certificate costs.  Inspections shall be required
notwithstanding a county board of supervisors' election not to charge
certificate and inspection fees.  If a fee is charged for conducting
the certification and inspection, it shall include either the
itemized actual costs, or the weighted average hourly rate, as
determined on an annual basis by the county, which shall be provided
to the producer prior to the payment of the fee.
   (c) Renewal of a certified farmers' market certificate or
certified producer's certificate may be denied by either the
department or a county agricultural commissioner if a certified
farmers' market or a certified producer is delinquent in the payment
of the required state fee or any county certification and inspection
fee or administrative civil penalty authorized under this chapter.
The certificate shall be eligible for renewal when all outstanding
balances and associated penalties or administrative fines have been
paid to the department or the respective county or counties.
  SEC. 11.  Section 47020 of the Food and Agricultural Code, as added
by Chapter 606 of the Statutes of 1996, operative January 1, 2000,
is repealed.
  SEC. 12.  Section 47021 is added to the Food and Agricultural Code,
to read:
   47021.  (a) Commencing January 1, 2000, every operator of a
certified farmers' market shall remit to the department, within 30
days after the end of each quarter, a fee equal to the number of
certified producer certificates and other agricultural producers
participating on each market day for the entire previous quarter.
The fee shall be established by January 1 of each year by the
department upon the receipt of a budget recommendation from the
advisory committee.  The fee shall not exceed sixty cents ($0.60) for
each certified producer certificate and other agricultural producers
participating on each market day.  A certified farmers' market may
directly recover all or part of the fee from the participating
certified and other agricultural producers.
   (b) Any operator of a certified farmers' market who fails to pay
the required fee within 30 days after the end of the quarter in which
it is due, shall pay to the department a monthly interest charge on
the unpaid balance, to be determined by the department and not to
exceed the maximum amount permitted by law.
   (c) All fees collected pursuant to this section shall be deposited
in the Department of Food and Agriculture Fund.  The money generated
by the imposition of the fees shall be used, upon appropriation by
the Legislature, by the department, to carry out this chapter,
including all of the following actions undertaken by the department:

   (1) The coordination of the advisory committee.
   (2) The evaluation of county enforcement actions and assistance
with regard to multiple county enforcement problems.
   (3) The adoption of regulations to carry out this chapter.
   (4) Hearing appeals from actions taken by county agricultural
commissioners to enforce this chapter.
   (5) The review of rules or procedures established by a certified
farmers' market and the issuance of advisory opinions and the
provision of informal hearings pursuant to Section 47004.1 as to
whether the rules or procedures are consistent with this chapter and
implementing regulations.
   (6) The maintenance of a current statewide listing of certified
farmers' markets with schedules of operations and locations.
   (7) The maintenance of a current statewide listing of certified
producers.
   (8) The dissemination to all certified farmers' markets
information regarding the suspension or revocation of any producer's
certificate and the imposition of administrative penalties.
   (9) Other actions, including the maintenance of special fund
reserves, that are recommended by the advisory committee and approved
by the department for the purpose of carrying out this chapter.
   (d) This section shall remain in effect only until January 1,
2005, and as of that date is repealed, unless a later enacted
statute, that is enacted before January 1, 2005, deletes or extends
that date.
  SEC. 13.  Section 47026 of the Food and Agricultural Code is
amended to read:
   47026.  This article shall remain in effect only until January 1,
2005, and as of that date is repealed, unless a later enacted
statute, that is enacted before January 1,  2005, deletes or extends
that date.
  SEC. 14.  Section 113745 of the Health and Safety Code is amended
to read:
   113745.  "Certified farmers' market" means a location  operated in
accordance with Chapter 10.5 (commencing with Section 47000) of
Division 17 of the Food and Agricultural Code, and the regulations
adopted pursuant thereto.
  SEC. 15.  No reimbursement is required by this act pursuant to
Section 6 of Article XIIIB of the California Constitution because the
only costs that may be incurred by a local agency or school district
will be incurred because this act creates a new crime or infraction,
eliminates a crime or infraction, or changes the penalty for a crime
or infraction, within the meaning of Section 17556 of the Government
Code, or changes the definition of a crime within the meaning of
Section 6 of Article XIIIB of the California Constitution.
